US Trade Deficit Rises to Highest Level since 2022

The US trade deficit rose to its highest level in more than two years in December, according to data from the US Department of Commerce released on Wednesday.

The department said the trade deficit rose to $98.4 billion in December 2024, compared to $78.9 billion in November, according to revised data.

Analysts had expected the trade deficit to rise to $96.6 billion in December, compared to $78.2 billion in the previous month, according to preliminary data, according to the German news agency "DPA".

The trade deficit rose more than expected, recording its highest level since March 2022, when it reached $101.9 billion.

The jump in the trade deficit came as the value of imports rose by 3.5% to $364.9 billion in December, while exports fell by 2.6% to $266.5 billion.

The value of imports increased due to an increase in imports of supplies and industrial raw materials, including finished metal works, and an increase in imports of consumer and capital goods and services, while imports of automobiles, spare parts and engines decreased.

At the same time, the value of US exports decreased due to a decrease in exports of consumer goods, supplies and industrial materials, capital goods, automobiles, spare parts and engines.

The US Department of Commerce report also indicated that the deficit in the goods trade balance increased in December to $123 billion compared to $104.5 billion in the previous month, while the surplus in the services trade balance decreased to $24.5 billion compared to $25.1 billion during the same period.